Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
Trimble's Sloan Ratio for the quarter that ended in Dec. 2023 was 18.68%.
As of Dec. 2023, Trimble has a Sloan Ratio of 18.68%, indicating there is a warning stage of accrual build up.
Trimble Sloan Ratio % Historical Data
The historical data trend for Trimble's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Scientific & Technical Instruments subindustry, Trimble's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Trimble's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Trimble's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Trimble's Sloan Ratio % falls into.
Trimble Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
Trimble's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Trimble's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 128.8 (Mar. 2023 ) + 44.6 (Jun. 2023 ) + 74.9 (Sep. 2023 ) + 63 (Dec. 2023 ) = $311 Mil.
Trimble's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 208.7 (Mar. 2023 ) + 142.4 (Jun. 2023 ) + 147.1 (Sep. 2023 ) + 98.9 (Dec. 2023 ) = $597 Mil.
Trimble's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -27.7 (Mar. 2023 ) + -2022.5 (Jun. 2023 ) + -14.2 (Sep. 2023 ) + -3.7 (Dec. 2023 ) = $-2,068 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Trimble (NAS:TRMB) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Dec. 2023, Trimble has a Sloan Ratio of 18.68%, indicating there is a warning stage of accrual build up.
Trimble Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Trimble's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Trimble Inc provides location-based solutions that are used in global positioning system (GPS), laser, optical and inertial technologies. Its products portfolio includes 3D laser scanning, flow and application control systems, monitoring systems, water management, and navigation infrastructure. It also manufactures laser and optics-based products, and GPS products. The company serves various industries which include agriculture, architecture, civil engineering, survey and land administration, construction, geospatial among others. The company operates in four reportable segments namely, Buildings and Infrastructure, Geospatial, Resources and Utilities, and Transportation. It derives most of its revenues from the US and Europe with the rest coming from the Asia Pacific and other markets.
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